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Department of the Treasury
Internal Revenue Service
Instructions for Form 1098-F

(Rev. January 2022)
Fines, Penalties, and Other Amounts

Section references are to the Internal Revenue Code order (order), or agreement with respect to any violation of
unless otherwise noted. a law or the investigation or inquiry into the potential
violation of a law, if the aggregate amount involved in all
Future Developments suits, orders, or agreements equals or exceeds an
For the latest information about developments related to amount determined by the Secretary (“threshold
Form 1098-F and its instructions, such as legislation amount”). The amount required to be paid includes costs
enacted after they were published, go to IRS.gov/ to provide services or to provide property. A separate
Form1098F. Form 1098-F must be filed with respect to each payer that
is a party to the suit, order, or agreement.
What’s New
Statements to be furnished to payers. If you are
Under the regulations, on the date it was published on required to file Form 1098-F, you must provide a
January 19, 2021, in the Federal Register, the threshold statement to the payer. For more information about the
amount is $50,000. Reporting is required for a suit, order, requirement to furnish a statement to the payer, see part
or agreement that becomes binding on or after January 1, M in the current General Instructions for Certain
2022. See T.D. 9946, available at IRS.gov/TD9946. Information Returns.
Box 2 now shows the amount to be paid for the Truncating payer's TIN on statements to payers.
violation or potential violation of a law. See Box 2. Amount Pursuant to Regulations section 301.6109-4, all filers of
To Be Paid for Violation or Potential Violation, later. this form may truncate a payer’s TIN (social security
number (SSN), individual taxpayer identification number
Reminders (ITIN), adoption taxpayer identification number (ATIN), or
In addition to these specific instructions, you should also employer identification number (EIN)) on statements to
use the current General Instructions for Certain payers. Truncation is not allowed on any documents the
Information Returns. Those general instructions include filer files with the IRS. A filer’s TIN may not be truncated
information about the following topics. on any form. See part J in the current General Instructions
• Who must file. for Certain Information Returns.
• When and where to file.
• Electronic reporting. Filer’s name, address, and telephone number box.
• Corrected and void returns. Enter the name, address, and telephone number of the
• Statements to recipients. filer of Form 1098-F. Use this same name and address on
• Taxpayer identification numbers (TINs). Form 1096.
• Backup withholding. Payer's name and address boxes. Enter the name and
• Penalties. address, in the appropriate boxes, of the person with
• Other general topics. respect to whom Form 1098-F is filed.

You can get the general instructions at IRS.gov/ Box 1. Total Amount To Be Paid Pursuant to the
1099GeneralInstructions or IRS.gov/Form1098F.
Suit, Order, or Agreement
Continuous-use form and instructions. Form 1098-F If the aggregate amount required to be paid pursuant to a
and these instructions are continuous use. Both the form suit, order, or agreement to, or at the direction of, a
and instructions will be updated as needed. For the most government or governmental entity in relation to the
recent version, go to IRS.gov/Form1098F. violation of a law, or for the investigation or inquiry into the
Online fillable Copies B and C. To ease statement potential violation of a law, equals or exceeds $50,000,
furnishing requirements, Copies B and C have been made enter the total amount required to be paid pursuant to the
fillable online in a PDF format available at IRS.gov/ suit, order, or agreement. This rule applies regardless of
Form1098F. You can complete these copies online for whether any separate amount required to be paid
furnishing statements to recipients and for retaining in pursuant to a suit, order, or agreement is less than the
your own files. threshold amount. This rule also applies if the aggregate
amount of all suits, orders, or agreements relating to the
same violation, investigation, or inquiry equals or exceeds
Specific Instructions the threshold amount.
Who Must File Payment amount not identified. If the suit, order, or
The appropriate official of a government or governmental agreement does not identify some or all of the total
entity (including a nongovernmental entity treated as a amount to be paid for the violation of a law or the
governmental entity) must file Form 1098-F, Fines, investigation, or inquiry into the potential violation of a law,
Penalties, and Other Amounts. The Form 1098-F reports and the government or governmental entity reasonably
the amount required to be paid pursuant to a suit, court expects the aggregate amount of the payment pursuant to

Dec 16, 2021 Cat. No. 71404E

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the suit, order, or agreement to equal or exceed $50,000, • Box 1. Total Amount To Be Paid Pursuant to the Suit,
enter $50,000. Enter code E in box 9. Order, or Agreement. Total Amount $230,000 ($40,000 +
$80,000 + $50,000 + $60,000)
Multiple payers. If, under the suit, order, or agreement,
the aggregate amount to be paid by multiple payers for • Box 2. Amount To Be Paid for Violation or Potential
Violation $40,000
the violation of a law or the investigation or inquiry into the
potential violation of a law equals or exceeds $50,000, • Box 3. Restitution/Remediation Amount $130,000
($80,000 + $50,000)
enter this payer’s individual and joint and several payment
liability. Enter code B in box 9. Do not file a Form 1098-F • Box 4. Compliance Amount $60,000

with respect to any person that does not have a payment Box 5. Date of Order/Agreement
obligation or obligation for costs to provide services or to
provide property. Enter the date the order was entered by the court or the
agreement was fully executed.
Box 2. Amount To Be Paid for Violation or
Box 6. Court or Entity
Potential Violation
Enter the name of the court, or any other entity, that
Enter the amount required to be paid for the violation,
entered the order or approved the agreement, if
investigation, or inquiry into the potential violation of a law.
applicable.
If some or all of the amount to be paid for the violation or
potential violation of a law is not identified, leave box 2 Box 7. Case Number
blank and enter code E in box 9.
Enter the case number associated with the court order or
Box 3. Restitution/Remediation Amount agreement, if applicable.

Enter the amount required to be paid (or costs to provide Box 8. Case Name or Names of Parties to Suit,
property or to provide services), as a result of the suit, Order, or Agreement
order, or agreement, which constitutes restitution or
remediation. If some or all of the amount to be paid as Enter the case name or names of parties to suit, order, or
restitution or remediation is not identified, leave box 3 agreement.
blank and enter code E in box 9.
Box 9. Code
Box 4. Compliance Amount Enter one or more of the following codes. Read the code
Enter the amount required to be paid (or costs to provide descriptions carefully to ensure you choose the correct
property or to provide services), as a result of the suit, one(s).
order, or agreement, for the purpose of coming into A—Multiple payments. Use code A if the payer has
compliance with a law. If some or all of the amount to be made or is obligated to make multiple payments to
paid to come into compliance with a law is not identified, satisfy the total payment required by the suit, order, or
leave box 4 blank and enter code E in box 9. agreement.
The amount entered in box 1 may or may not B—Multiple payers. Use code B if multiple payers
have a payment obligation pursuant to the suit, order,
! equal the amount entered in box 2, box 3, or or agreement.
CAUTION box 4, or the sum of box 2 plus box 3 plus box 4.
C—Multiple payees. Use code C if there are multiple
Example. Corporation A enters into an agreement with payees pursuant to the suit, order, or agreement.
State Y's environmental enforcement agency (Agency) for D—Provision of services or provision of property
violating state environmental laws. Pursuant to the required. Use code D if the suit, order, or agreement
agreement, Corp. A pays $40,000 to Agency in civil requires the payer to provide services or to provide
penalties, $80,000 in restitution for the environmental property.
harm that the Corp. A has caused, $50,000 for E—Payment amount not identified. Use code E if
remediation of contaminated sites, and $60,000 to the suit, order, or agreement does not identify some or
conduct comprehensive upgrades to Corp. A's operations all of the amount required to be paid for the violation,
to come into compliance with the state environmental investigation, or inquiry, or if it identifies a payment as
laws. restitution, remediation, or an amount paid to come
into compliance with a law but does not identify some
Pursuant to the settlement agreement, the aggregate or all of the aggregate amount the payer must pay. In
amount Corp. A is required to pay to, or at the direction of addition, use code E if the suit, order, or agreement
Agency, for the violation or potential violation of State Y does not identify some or all of the amount to be paid
law exceeds $50,000. Therefore, an appropriate to provide property or to provide services.
government official of Agency must file Form 1098-F.
Agency will complete the Form 1098-F as follows:

-2- Instructions for Form 1098-F (Rev. 01-2022)

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